Company Performance: Digimarc reported a revenue of US$8.01 million, down 23% from the previous quarter, with a net loss of US$8.22 million, although the loss per share improved to US$0.38. Revenue is expected to decline further over the next two years, contrasting with industry growth projections.
Market Outlook and Risks: The company's shares have dropped 21% in the past week, and analysts noted that both revenue and earnings per share missed expectations. Additionally, there are two warning signs regarding potential risks for Digimarc, one of which is particularly concerning.
DMRC
$8.14+Infinity%1D
Analyst Views on DMRC
Wall Street analysts forecast DMRC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DMRC is 15.00 USD with a low forecast of 10.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast DMRC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DMRC is 15.00 USD with a low forecast of 10.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 8.000
Low
10.00
Averages
15.00
High
20.00
Current: 8.000
Low
10.00
Averages
15.00
High
20.00
Needham
Buy
downgrade
$30 -> $20
2025-10-31
Reason
Needham
Price Target
$30 -> $20
2025-10-31
downgrade
Buy
Reason
Needham lowered the firm's price target on Digimarc to $20 from $30 and keeps a Buy rating on the shares. The company reported Q3 results consistent with the firm's expectations and is now positioned to have roughly break-even non-GAAP net income in Q4 and dramatically improve their cash burn to positive free cash flow in 2026, the analyst tells investors in a research note. Digimarc continues to make progress against their three key growth drivers including Gift Cards, Product and Digital Authentication opportunities, the firm added.
Needham
Joshua Reilly
Strong Buy
Maintains
$40 → $30
2025-02-27
Reason
Needham
Joshua Reilly
Price Target
$40 → $30
2025-02-27
Maintains
Strong Buy
Reason
About DMRC
Digimarc Corporation is engaged in providing digital watermarking technologies. The Company offers a Digimarc Illuminate Platform, which is a software-as-a-service (SaaS) cloud-based platform for digital connectivity that provides the tools for the application of advanced digital watermarks and quick response (QR) codes, software (digital twins) that enables various systems and devices to interact with those data carriers, and a centralized platform for capturing insights about digital interactions and automating activities based on that information. The Digimarc product suite is built on top of the Digimarc Illuminate platform and addresses specific business needs in areas, such as automation, authenticity, sustainability, and customer trust and connectivity. The Company operates under a single segment: product digitization solutions. Its products provide various benefits, including Digimarc Automate, Digimarc Engage, Digimarc Recycle, Digimarc Retail Experience and Digimarc Validate.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
